Alchevsk Iron & Steel OKs Additional Share Issue

After Alchevsk Iron & Steel’s (ALMK: U/R) additional share issue was delayed due to the failure to publish an official announcement, the company (according to Interfax) announced it would go ahead with its plans. Subscription will take place in two stages: (1) July 16 to August 3, which will be open to shareholders with pre-emptive rights pro rata (the ex-rights date is set at July 16), and (2) from August 4 to June 25, 2008 on a first-come first-serve basis. Shareholders approved plans for the additional share issue at their April 17 AGM. Eugene Cherviachenko: This announcement means the speculative opportunity in Alchevsk Iron & Steel has evaporated. Its current price of USD 0.07 per share is within the implied multiples-based price on a diluted basis of USD 0.06-0.07 (see our note of June 27). We recommend subscription for new shares, at par value of USD 0.02.